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Privity of Contract is subject to the exception:
- a)Where a trust or charge is created
- b)where payment is made to a third party
- c)Where payment is made by a third party
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Privity of Contract is subject to the exception:a)Where a trust or cha...
The doctrine of privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such.
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Privity of Contract is subject to the exception:a)Where a trust or cha...
Privity of Contract Exception: Trust or Charge Created
Privity of Contract refers to the relationship that exists between parties to a contract. It means that only parties to a contract can enforce the terms of that contract. However, there are exceptions to this rule, and one of them is where a trust or charge is created.
Explanation
When a trust or charge is created, it means that a third party has an interest in the contract. This third party is not a party to the contract, but they have a right to enforce the terms of the contract. This is because the trust or charge creates a beneficial interest in the property or assets that are the subject of the contract.
For example, if A and B enter into a contract for the sale of a property, and A creates a trust over the property in favor of C, then C has a right to enforce the terms of the contract. This is because C has a beneficial interest in the property, even though they are not a party to the contract.
Conclusion
In conclusion, the exception to Privity of Contract where a trust or charge is created means that a third party who has a beneficial interest in the property or assets that are the subject of the contract can enforce the terms of the contract, even though they are not a party to the contract.
Privity of Contract refers to the relationship that exists between parties to a contract. It means that only parties to a contract can enforce the terms of that contract. However, there are exceptions to this rule, and one of them is where a trust or charge is created.
Explanation
When a trust or charge is created, it means that a third party has an interest in the contract. This third party is not a party to the contract, but they have a right to enforce the terms of the contract. This is because the trust or charge creates a beneficial interest in the property or assets that are the subject of the contract.
For example, if A and B enter into a contract for the sale of a property, and A creates a trust over the property in favor of C, then C has a right to enforce the terms of the contract. This is because C has a beneficial interest in the property, even though they are not a party to the contract.
Conclusion
In conclusion, the exception to Privity of Contract where a trust or charge is created means that a third party who has a beneficial interest in the property or assets that are the subject of the contract can enforce the terms of the contract, even though they are not a party to the contract.
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Privity of Contract is subject to the exception:a)Where a trust or charge is createdb)where payment is made to a third partyc)Where payment is made by a third partyd)None of theseCorrect answer is option 'A'. Can you explain this answer?
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